Realtors association: Home sales strong in 2013

Single-family home prices up 14.7 percent over 2012

As sales of condominiums posted strong gains in the Santa Clarita Valley and home prices continued rising in 2013, investors pulled back from the single-family home market, a Realtors association reported this week.

Information from the Southland Regional Association of Realtors indicates 1.6 fewer homes sold in 2013 compared to the year before.

Still, December 2013 sales of 244 single-family homes in the Santa Clarita Valley were the strongest since 2004, when escrows closed on 269 homes, according to the association.

A lack of inventory limited single-family home sales from ending the year on an even stronger note — due, in part, to the steady drop of distressed properties, the realty group reported.

December foreclosures dropped to the lowest level all year, representing only 2 percent of the total home sales.

On the flip side, 3,389 homes and condos sold in 2013. By comparison, local home sales peaked locally with 3,869 sales in 2004.

One local Realtor said she expects home sales to continue rising as inventory increases this year. Homeowners are beginning to use newfound equity in their homes, which will create more inventory and more sales, said Cherrie Brown.

“Real estate listings are now entering the market at a faster rate than they were back in October through December,” said Connor MacIvor. The increased inventory, however, slows price increases down a little as buyers have more options, he said.

Homes are now entering the market at a faster rate than they are selling.

“Within the last seven days we have had 59 listings that changed their (sales) prices; 85 percent of the homes experienced a reduction,” MacIvor said.

Condo sales were up in 2013 compared to 2012, and locally Realtors believe more people sought out condos for a number of reasons, including affordability and a change in investor trends.

“It ran the spectrum,” said Mike Lebecki. “Entry-level buyers were getting into the market and folks were downsizing. There were very few investors.”

The annual median price of all single-family homes sold in the SCV last year came in at $421,625. That was up 14.7 percent over 2012 and the second consecutive year that prices rose after five years of declines.

The low point came in 2011 when median prices dropped to $364,867.

Median annual prices for condos increased nearly 34 percent over 2012 to $257,142. It was the first year condo prices rose after declines in five of the prior six years. Prices hit rock bottom in 2012 when the median price was $192,158.

“While demand was heavy with multiple offers common during much of 2013, a restricted inventory, tight credit, and rising resale prices limited home sales,” said Nancy Starczyk, the 2014 president of the Santa Clarita Valley Division of the Southland Regional Association of Realtors.

Despite lingering issues, the local housing market continues to move to a stronger, more stable position as foreclosures and short sales diminish and standard sales surge, said both Starcyk and Jim Link, the association’s chief executive officer.

In all, SCV sales in 2013 represented $1.4 billion in transactions locally. The realty group estimated millions were spent in related services and home products that result when properties change owners.